Commerce City Man Pleads Guilty to Wire Fraud and Engaging in Monetary Transactions with Proceeds from Wire Fraud

DENVER—David D. Gwin, age 51, of Commerce City, Colorado, pled guilty to wire fraud and engaging in monetary transactions with proceeds from wire fraud before U.S. District Court Judge Christine M. Arguello, United States Attorney David Gaouette, FBI Special Agent in Charge James Davis, and IRS Criminal Investigation Special Agent in Charge Christopher Sigerson announced. The guilty plea took place on February 19, 2010. Gwin was indicted by a federal grand jury in Denver on February 9, 2009. Gwin, who is free on bond, is scheduled to be sentenced by Judge Arguello on May 17, 2010.

According to the stipulated facts contained in the plea agreement, from October 2003 through January 2005, Gwin operated a business called Asset Funding Solutions (AFSI), which purported to be in the business of finding private investors to fund loans for investment projects. In approximately February 2005, Gwin changed the name of the business to Asset Global Funding (AGF), and continued to operate until at least August 2005.

Between October 2003 and January 2005, Gwin met with potential clients who were seeking loans for investment projects. Gwin falsely represented that he: 1) had significant experience in finding funding for multi-million dollar loans for investment projects; and 2) was knowledgeable, competent, and had the ability and contacts necessary to find and secure millions of dollars in funding for such multi-million-dollar loans. Gwin also often made false reassuring comments to people and companies seeking multi-million-dollar loans, such as comments that their loans would be easy to fund.

Companies seeking loans were required to pay AFSI/AGF a fee in advance of receiving the funding for their loan. In order to persuade the people and companies seeking the loans to send the advanced fee, which ranged from $5,000 to $340,000 depending on the size of the loan sought, Gwin falsely told them the fee was refundable if the loan they sought was not funded. Gwin repeatedly falsely told people and companies that he was meeting with investors to secure their funding and that funding would happen soon, when in fact he did not secure funding for the loans for which the advanced fees were paid. Further, Gwin did not return any portion of the advanced fee that were paid to him, with three exceptions.

Wire fraud carries a penalty of not more than 20 years in federal prison, and up to a $250,000 fine. Engaging in monetary transactions in property derived from wire fraud carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service (IRS) Criminal Investigation.

Gwin is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.